SOURCE: Xcite Energy Limited

June 13, 2012 02:00 ET

Bentley Phase 1A Operational Update

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                           TSX-V, LSE-AIM: XEL



13 June 2012

                          Xcite Energy Limited
                            ("Xcite Energy")

                  Bentley Phase 1A Operational Update


Xcite Energy is pleased to announce that the 9/3b-7z well has reached
target depth of 9,646 ft (measured depth) on the Bentley Field.

A reservoir section in excess of 2,000 ft has been drilled with 100%
net pay and sand control screens have been run successfully. The top
reservoir, at 3,609 ft true vertical depth, is higher than previously
encountered in any part of the field to date, thereby giving an oil
column depth of approximately 121 ft. Geo-steering was again used
successfully in the reservoir section to place nearly 100% of the
wellbore in the target range of within 5ft to 12 ft from the roof of
the reservoir.

The remainder of the planned operations, including installation of the
smart completion equipment (enabling individual laterals to be flowed,
co-mingled or shut-in), the down-hole pumps and commissioning of the
processing equipment will now be undertaken prior to the production
test commencing.

Steve Kew, Exploration and Development Director, commented:"We are pleased
with the work programme to date and this marks the end
of the drilling phase as the rig operations now focus on the completion
and preparation for production testing, with the upper lateral now
ideally positioned as the first production well for Phase 1B of the
Bentley development programme. The additional oil column encountered
will be assessed and modelled in due course, and augurs well as we move
ahead with the work programme towards first oil on Bentley."



ENQUIRIES:
Xcite Energy Limited                               +44 (0) 1483 549 063
Richard Smith                   Chief Executive
                                Officer
Rupert Cole                     Chief Financial
                                Officer
Oriel Securities (Joint
Broker and Nomad)                                  +44 (0) 207 710 7600
Emma Griffin                    Partner
Michael Shaw                    Partner
Morgan Stanley (Joint Broker)                      +44 (0) 207 425 8000
Andrew Foster                   Managing Director
Pelham Bell Pottinger                              +44 (0) 207 861 3232
Mark Antelme                    Director
Henry Lerwill                   Account Director

Paradox Public Relations                           +1 514 341 0408
Jean-Francois Meilleur          Consultant
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Forward-Looking Statements

Certain statements contained in this announcement constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Company's future outlook
and anticipated events or results and, in some cases, can be identified
by terminology such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "intend", "estimate", "predict", "target",
"potential", "continue" or other similar expressions concerning matters
that are not historical facts. These statements are based on certain
factors and assumptions including expected growth, results of
operations, performance and business prospects and opportunities. While
the Company considers these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
Forward-looking information is also subject to certain factors,
including risks and uncertainties that could cause actual results to
differ materially from what we currently expect. These factors include
risks associated with the oil and gas industry (including operational
risks in exploration and development and uncertainties of estimates oil
and gas potential properties), the risk of commodity price and foreign
exchange rate fluctuations and the ability of Xcite Energy to secure
financing. Additional information identifying risks and uncertainties
are contained in the Company's annual information form dated 26 October
2010 and in the annual Management's Discussion and Analysis for Xcite
Energy for the period ended 31 March 2012 filed with the Canadian
securities regulatory authorities and available at  www.sedar.com . The
Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities regulations.





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